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Bellfont Company produces door stoppers
Bellfont Company produces door stoppers. August production costs are below:
Door Stoppers produced 76,000
Direct material (variable) 20,000
Direct labor (variable) 40,000
Supplies (variable) 20,000
Supervision (fixed) 26,500
Depreciation (fixed) 24,600
Other (fixed) 5,400
In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Bellfont's production cost per door stopper for September?
Expert Solution
Bellfont's production cost per door stopper for September is calculated as follows:
| $ | |
|---|---|
| Direct material (variable) ($20,000 /76,000 * 100,000 ) | 26,316 |
| Direct labor (variable) ($40,000 /76,000 * 100,000 ) | 52,632 |
| Supplies (variable) ($20,000 /76,000 * 100,000 ) | 26,316 |
| Supervision (fixed) | 26,500 |
| Depreciation (fixed) | 24,600 |
| Other (fixed) | 5,400 |
| Total Cost | $161,764 |
production cost per door stopper for September = $161,764 / 100,000 units
= $1.62 Per Unit
Bellfont's production cost per door stopper for September is $1.62 Per Unit
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